Africa-Press – Namibia. THE government has requested its offices, ministries and agencies to mobilise savings within the current budget to make funds available for the recent agreement it entered into with unions to prevent a countrywide civil servant strike.
According to a leaked circular by the Ministry of Finance, the financial implications of the government’s agreement with the Namibia Public Workers Union (Napwu) and the Namibia National Teachers Union (Nantu) would cost N$1,2 billion.
The government recently signed an agreement with Nantu and Napwu for civil servants to get a 3% increase on their basic salaries, an 11% increase on their housing benefit for non-management employees, and a 14% increase in transport benefits from 1 April.
The deal averted a strike which over 42 000 civil servants were planning to partake in.
Initially, the deal was expected to cost the government N$924 million.
The circular dated 16 August, which was signed by the executive director of finance, Titus Ndove, says the treasury conducted an analysis of the budgeted vacant positions meant to mobilise potential savings for the purpose of accommodating the collective agreement.
“The information from the Integrated Financial Management System (IFMS) was used to get the appointments from budgeted vacant positions effective from 1 April to 31 July,” Ndove states.
As a result, the treasury is requesting the government ministries to validate the analysis outcome, indicating the status of the remaining budgeted-for vacant positions not yet filled in the IFMS, and to submit this not later than today.
“With regards to the modalities on the implementation of the collective agreement, the back-pay arrears on basic salary, housing and transport allowance will be effected by the end of October 2022, while the normal monthly increases as from November 2022, reflected on the payslip for November 2022,” the executive director says in the circular.
Thereafter government agencies will be expected to calculate and pay accordingly the arrears linked to basic salaries, such as overtime or bonuses.
Ndove yesterday confirmed the authenticity of the circular to The Namibian and said it is unfortunate that an internal and confidential circular was leaked to the media.
He, however, said the government is committed to implementing the provisions of the collective agreement to its full extent.
“What is contained in the circular is basically the modalities. As you are perhaps aware, this expenditure was not budgeted for, however, we started with the mid-year budget review process, which enables us to review and make the necessary changes to the budget.
“Implementation of the salary increment is one of those changes expected during that process,” he said.
He said the government will be ready to implement the collective agreement, starting in October.
Ndove said they would also apply “appropriate due diligence” to identify which unfilled vacancies may be considered for suspension by the treasury, without compromising service delivery and operational efficiency of government ministries, offices and agencies.
“It is important to appreciate that mobilising resources from unfilled and non-critical vacancies are not the only sources the government is considering to raise funds to effect salary increments,” the executive director said.
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